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  • Pay as you go withholding



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    Pay as you go withholding chapter


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    This chapter provides a general description of pay as you go withholding tax liabilities that are reported to the ATO by entities withholding amounts (income tax) from certain payments to other entities.

    Pay as you go withholding applies generally to payments made, or non-cash benefits provided, on or after 1 July 2000. Payments and transactions subject to withholding are referred to as 'withholding payments'. These payments include: salaries, wages, allowances, bonuses or commissions paid to an employee, payments to company directors, return to work payments, pension or annuity payments, Centrelink or similar payments, non-cash payments that are not captured in the fringe benefits tax system, mining payments, natural resource payments and many others.


    For the 2007-08 financial year:

    • the ATO collected $114.6 billion of pay as you go withholding revenue, an increase of 6.5% from 2006-07, and
    • large pay as you go withholders accounted for 67.8% of all withholding.
      Last modified: 18 Mar 2009QC 21490